WPP reported a 0.7% decline in revenues to £1.3 billion in the first quarter of the year, with the UK the group’s slowest growing region.
However, UK revenues were up by over 2%, which WPP said reflected the significance of market research revenues.
Much of the blame for the decline in WPP’s revenues rests with the dollar’s weakness against sterling. Without the effects of currency fluctuations and acquisitions its revenues grew 4.3% year on year.
On an underlying basis, the group reported a 4.3% rise in revenues, in line with its target of beating industry growth of 4.5% this year.
The Middle East continues to be the fastest growing area, with almost 22% like-for-like growth and Latin America continued the strong growth of 2006, with nearly 10% like-for-like growth.
On an underlying basis, north America remained strong with revenues up over 6%, whilst continental Europe was up over 4%.
Earlier in the week, WPP acquired a 49.9% stake in Clemmow Hornby Inge after the marketing services company broke off talks with Havas (see WPP Acquires Stake In CHI).
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